BASF to sell German insulation subsidiary

LUDWIGSHAFEN, GERMANY (Nov. 9, 11:45 a.m. ET) — BASF SE said Nov. 7 that it plans to divest its subsidiary BASF Wall Systems GmbH & Co. KG, together with the Marktredwitz site. Currently, BASF Wall Systems GmbH & Co. KG has about 190 employees, who will continue to be employed by the new owner.

The groups said BASF Wall Systems GmbH & Co. KG is a successful, medium-sized supplier of insulation and finishing systems in the German market. The company’s main field of business is systems for the exterior and interior thermal insulation of buildings, sold under the Heck brand.

The company also offers renovation and restoration systems for historical buildings under the Rajasil brand, and in 2011, generated sales in the mid double-digit million euro range, BASF said.

“Our Wall Systems business in Germany posted significant growth over the last few years. Nevertheless, there are only limited synergies with other BASF fields of activity that we can make use of. A new owner will be better able to drive the business,” said Tilman Krauch, president of BASF’s Construction Chemicals division, in the company announcement.

BASF emphasized that BASF Wall Systems GmbH & Co. KG “is not part of the insulating materials business of BASF,” adding that the system components produced by BASF Wall Systems GmbH & Co. KG itself include adhesive mortar and renders.

The group said its polyurethane and polystyrene insulating materials are not affected by this planned sale, and remain integral parts of the BASF portfolio that contribute to the construction of energy-efficient buildings.